One way insurance companies implement cost cutting measures is by recommending that the people they insure use the direct repair companies with which they are associated. These companies  are under contract with the insurance agencies, which allows the agency some perks that they don’t get from a non-contracted repair shop.

The first is the free storage. Let’s face it. Storing a car is expensive, whether it be for an individual or an insurance company. So one of the things in the contract with the direct repairs shops is free storage for the cars they are working on. You may not even realize this, but this storage fee gets worked into the cost you pay for repairs.

Next is another freebie, and it’s towing. If the direct repair shop ends up towing the car that they later get contracted to work on, the chances of the insurance company ending up paying for the tow truck virtually disappear.

You, as the consumer may not realize this, but it’s a good thing for you too. And I say this because somewhere along the line this fee would get buried right along with a bunch of other things that you would ultimately be paying for in the end anyway. So the insurance company’s deal with the direct repair shop saves you money in the end, which is why it’s truly in your best interest to use the repair shops recommended by your insurance provider. They really do have your best interest at heart.

And what’s the point of making a deal with direct repair shops if there are no pricing concessions involved. It would be kind of foolish, don’t you think?

These contracted repair shops offer discounts on parts and labor in some cases, keeping the costs to the insurance company down where in turn they are not required to pay out as much on their claims.

Right now you might be thinking “Wait a minute. Why is it a good thing for the insurance company to have to pay me less money on my claim?” The answer is very simple. They are only paying you less because the company that did the repairs charged must less than their competitor would have. Do you understand now?

The less the insurance company has to pay for repairs, the lower everyone’s premiums will be. This will always be the case, so it can be smart to work with your insurance company instead of against them. It’s just good business sense. So don’t use people outside of the network because you feel like your freedom is being taken away from you. You are only hurting yourself in the long run.

By Collision Week
The Insurance Institute for Highway Safety (IIHS) says it does not recommend the use of aftermarket structural parts because there is no system in place to guarantee that they would perform the same way the original parts would in a crash.

David Zuby, chief research officer for the IIHS, was quoted in Consumer Reports Thursday saying, “The vehicle structure is part of a complex system designed to protect people in crashes, as well as hold up the engine. There’s a lot of engineering that goes into making a crash protection system. You can’t willy nilly change those parts, because the system won’t work the way it was designed.”

The consumer Reports article was prompted by reports from Ford about possible safety problems with some aftermarket structural parts. Following its demonstration at the Collision Industry Conference on Wednesday condemning unsafe aftermarket parts (see related story below), Ford motor company released its findings to mainstream media outlets.

The IIHS told Consumer Reports that it has not crash-tested aftermarket bumpers, frame rails, or other safety related parts, however, “it does not advocate their use because there is no system in place to guarantee that they would perform the same way the original parts would in a crash.”

“There’s too much unknown to recommend them,” Zuby told Consumer Reports.

Read the full story in Consumer Reports

Whether you are a claimant or an insured, you need to report the accident to the insurance company.  When you speak to them, they will recommend one of their Direct Repair Shops.

Do you have to use a Direct Repair Shop?

No. In the end, the choice is yours. The insurance company may tell you that the shop of your choice is not on their “approved” list of shops and that they may not be able to efficiently handle your claim due to your selection of a certain shop, but do not be intimidated by this. It is your right to choose whatever shop you want to repair your vehicle.

However, if by chance you pick a bad shop (that is not a DRP), and they mess up your repairs, it is you against the body shop. The insurance company is only liable to pay for the original repair, it will not warranty how those repairs are made, whereas if you had gone to one of the insurance company’s direct repair facilities, then they would have to get involved.

In closing, always remember, you have to go with a shop that you feel comfortable dealing with. It is your vehicle being repaired and you have to be happy with the outcome.

Stumbled across a blog post on a great discussion board I’ve been participating on, much to either the delight or dismay of the other participants, as I apparently do not fit in. But that’s ok. I love a good debate.

Back to the blog post. AutoMuse® points out a recent news item up in Connecticut where the Attorney General, Richard Blumenthal, wants to pass legislation to make sure consumers cars are repaired correctly and safely and demands that insurance companies do not harass or push consumers to use their “DRPs” or preferred shops.

Consumers deserve to choose where a car is repaired. No insurer should straightjacket or corral consumers, forcing them to use a so-called preferred shop.

I actually agree with this statement, and although I outline what DRP’s are, and how they work, and how properly run ones will protect and help a consumer, I have always said it is the CUSTOMER’S choice as to where they get their car repaired. I think some of my naysayers miss that part of my discussions, posts and articles.

For the full blog post over at AutoMuse® click here.

And my question for those reading: If Lyn had taken her vehicle to a non-DRP shop and had the same problems with the repairs, who was going to back up her problems then?

When you first choose a repair facility for your vehicle, the shop should tell you if they have problems working with a particular insurance company. However, what happens is, they start repairs and when they run into a problem with either a supplement, or overage on an estimate, they may tell you that the insurance company won’t meet all their demands.

The next call you will get is from your insurance company. The insurance company will tell you that the shop will not work with them and any charges the insurance company does not find valid, you will owe to the shop.


Obviously this is unacceptable, and the next move you may make is to move your car to a shop that the insurance company will work with. You call the shop that has your vehicle and tell them you want to move it. All of a sudden the shop is not as nice to you as when you first brought your vehicle to them. Now the shop wants to charge you tear down, storage and admin fees, and parts restocking fees. This could be hundreds to thousands of dollars over the original estimate.

Why should you be caught in the middle of a dispute between the insurance company and the body shop?

At the risk of being accused of taking one side or the other, please understand that each situation is different and there can be multiple factors involved. Some insurance companies do try to take advantage of the body shop, but I have seen body shops overinflate the value of repairs.

It has been my experience that shops overcharge to remove your vehicle to make up for the loss of income and hassle. They more than likely knew before they started repairs, that they could not work with the insurance company. They feel that they are punishing the insurance company by charging all the fees but it always comes back to the customer.

What happens all the time is the shop blames the insurance company, the insurance company blames the shop when both of them should have been able to sit down and repair the car per the manufacturer requirements without under or over inflating the estimate.

How do you prevent this scenario from happening?

If you do not use a Direct Repair Shop on the insurance company’s program, always talk to the shop manager of the shop you may want to use. Tell them which insurance company will be paying for the repairs and ask them if they work well with the insurance company or do they normally have issues with collecting full payment for repairs or argue about the repair process. Conversely, speak with your claims adjuster to verify that they have a good working relationship with the prospective shop. If either entity tells you they do not have a good track record, move your vehicle to another shop. Don’t wait until there are problems.

In closing, it is highly recommended to always do your homework when choosing a repair facility for your vehicle as well as on the insurance company itself. Do not be afraid to ask questions about a shop’s reputation with a particular insurance company. It is your right to get your vehicle repaired correctly, and to your satisfaction.

“There is no regulation of the auto repair industry. The National Insurance Crime Bureau estimated that every family in the United States pays an extra $1,000 a year in insurance premiums to cover the cost of fraud.”

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Myth: In many cases, the consumer believes that the insurance company and body shop are in bed with one another and do not have the best interests of the customer at heart. Consumers often feel that the insurance company wants their vehicle fixed as cheap as possible and that the repair will be below standards.

Fact: Even though the body shop has a contract with the insurance company to follow the insurance company’s repair guidelines in regards to parts and labor rates, the body shop also has a contract with the vehicle owner to repair their vehicle per the manufacturer and I-Car certification standards. What this means is that any respectable body shop worth their salt will not let any insurance company dictate how the vehicle should be repaired. Especially if that body shop holds the liability on those repairs.

Myth: Consumers often believe that DRPs will use inferior parts and products when repairing their vehicles in order to keep the repairs cheap and make the numbers that insurance companies keep them to every year.

Fact: There are basically 3 different types of parts: OEM, non-OEM or more commonly referred to as aftermarket and LKQ or used/refurbished parts. OEM (original equipment manufacturer) parts are parts provided by the actual vehicle manufactures. Non-OEM parts are parts provided by a variety of aftermarket vendors. The third type can be refurbished OEM or used parts from a salvage yard.

The body shop can only repair your vehicle with the type of parts that are stated in your insurance policy. It is very important that you review your policy and go over what that shop will use on your vehicle.

Myth: Consumers believe that they have no choice as to where they can get their vehicle repaired.

Fact: While insurance companies will refer you to a DRP, it is still ultimately the consumers choice as to what shop they go to.

In closing, whatever body shop or collision repair center is chosen, it is their responsibility to the consumer to repair the vehicle to pre-accident condition, meeting all state and federal laws as well as manufacturer’s standards and any certifications. No insurance company can tell a shop to do otherwise.

No. In the end, the choice is yours. The insurance company may tell you that the shop of your choice is not on their “approved” list of shops and that they may not be able to efficiently handle your claim due to your selection of a certain shop, but do not be intimidated by this. It is your right to choose whatever shop you want to repair your vehicle.

If by chance you pick a bad shop, and they mess up your repairs, it is you against the body shop. The insurance company is only liable to pay for the original repair, it will not warranty how those repairs are made, whereas if you had gone to one of the insurance company’s direct repair facilities, then they would have to get involved.

Your insurance will elect to replace your vehicle or reimburse you for the ACV in those instances where the vehicle is economically impractical to repair.

A vehicle is considered economically impractical to repair, or a total loss, if the cost to repair the vehicle equals or exceeds the vehicle’s ACV on the date of the loss. In many instances an insurance company will total a vehicle if the appraised damages equal 80% of the vehicle’s ACV because often, once repairs are begun, additional damages or “hidden damages” are found which would render the vehicle a total loss by definition. (This is sometimes referred to as a “constructive total” loss).

If the accident or claim is not my fault, do I go through my insurance company or the other person’s insurance company?

Report the crash to your insurance company immediately or within the time specified by your policy along with a copy of any police reports or supporting documents. Then report it to the other insurance company.

Typically each company will have its own way of handling a claim. The majority of the time, if it is not your fault, the other insurance company will process the claim. Just keep on top of them to insure your case is being handled promptly and to your satisfaction.

Being prepared in the case of an accident is also important. Keep an emergency kit in your trunk or under a seat with a set of collapsible cones, warning triangles or even emergency flares. Make sure you also have a PEN and a card with relevant medical information for you and your family. Keep a disposable camera handy to take pictures, especially one that has a flash in case the accident is at night. Most disposable cameras are fairly durable and can survive the heat of a car, especially if stored away from direct sunlight. Replace it every two years to be sure the film is fresh.

What to do after an auto accident:

• Stay as calm as possible.

• Call the police immediately. They will write up a police report that will have a report number which you will need.

• Check for injuries. Life and health are more important than damage to vehicles. When in doubt, call an ambulance.

• If the accident is minor and there are no serious injuries, most states will allow you to move your vehicles to a safe place, rather than risk being in moving traffic. Check your states laws.

• Turn on hazard lights. If warranted, and possible, use cones, warning triangles or flares for safety. Turn car engine off so it does not risk sparking a fire.

• Make immediate notes about the accident including the specific damages to all vehicles involved. If the name on the auto registration and/or insurance policy is different from the name of the driver, establish the relationship and write it down. Get witness information, if possible, as well. Swap information with the other party. Names, phone numbers, insurance policy information, tag numbers, VIN number and make of vehicle.

• Don’t sign any documents unless a police officer asks you to sign for a ticket.

• Be polite, but don’t ever tell the other drivers or the police that the accident was your fault, even if you think it was. Likewise, do not accuse the other drivers of being at fault at this time. It is wise to state only the facts. Limit your discussion of the accident to the insurance agent and the police.

• If you have a camera handy, and it is safe to do so, it may be helpful to photograph the accident scene. You want to get pictures of the cars involved, the people, and especially the damage before it is taken away from the scene. Pictures of skid marks or guard rails or other objects that were part of the accident are also useful.

• If possible, do not leave the accident scene before the police officers and other drivers do.

• Finally, remember that while getting the facts is very important, investigating the accident should be left to the police officers and the insurance companies.

• Don’t accept offers to settle for payment on the spot without careful consideration. You may be held liable later for the same damages.

AutoBodyFAQ.com hopes to dispel some of the uncertainties and give you some real world scenarios on dealing with the stressful experience of getting your vehicle repaired to pre-accident condition. Hopefully we can answer any questions you might have that we haven’t already covered in our extensive FAQ.